23095. Second National Bank (Parkersburg, WV)

View Charter #864 on SPMC

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
864
Charter Number
864
Start Date
January 30, 1897
Location
Parkersburg, West Virginia (39.267, -81.562)

Metadata

Model
gpt-5-mini
Short Digest
9b5c3afc

Response Measures

Accommodated withdrawals, Books examined

Description

Multiple contemporaneous articles report a discovered defalcation by clerk Lee (B.) McFarland (~$42k–$73k in varying reports, most give $43,000) which triggered a run. Bank officers kept the bank open late, paid depositors, and other banks offered assistance; there is no mention of suspension, receivership, or permanent closure in these articles. I corrected inconsistent shortage amounts in sources and use $43,000 as the prevalent figure.

Events (2)
1. March 7, 1865 Chartered
Source
historical_nic
2. January 30, 1897 Run
Cause
Bank Specific Adverse Info
Cause Details
Discovery of a defalcation by trusted clerk Lee B. McFarland (reported ~ $42,000–$43,000) who had been speculating in grain and stocks, causing loss in the individual deposit accounts.
Measures
Bank remained open late (7 PM to midnight), paid out deposits, invited depositors to present themselves; other local banks offered assistance.
Newspaper Excerpt
Some hint of this trouble started a run on the bank. The officers, knowing their ability to meet demands, kept the bank open from 7 o'clock until midnight, inviting all depositors to come in if they wished.
Source
newspapers

Newspaper Articles (11)
1. February 1, 1897 The Topeka State Journal Topeka, KS
Article from The Topeka State Journal, February 1, 1897

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Article Text

A CLERK STEALS $73,000. He Kept His Books Locked Up but the Directors Got Them. Cincinnati, Feb. 1.-A Times-Star special from Parkersburg says that a defalcation of $73,000 was discovered in the Second National bank of that city. It was found in the accounts of Lee McFarland, an old and trusted clerk, in charge of individual deposits. It has been observed that he kept his books locked up and finally during his absence the directors got the books and made an examination with the above results. Mr. McFarland's bondsmen and relatives will make the amount good. Some hint of this trouble started a run on the bank. The officers knowing their ability to meet demands kept the bank open from 7 o'clock until midnight inviting all depositors to come in if they wished. McFarland had speculated in grain and stocks.

2. February 1, 1897 Evening Star Washington, DC
Article from Evening Star, February 1, 1897

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Article Text

TRUSTED CLERK'S SHORTAGE. A Defalcation in the Second National Bank at Parkersburg, W. Va. CINCINNATI, Ohio, February 1.-A Times-Star special from Parkersburg says that a defalcation of $43,000 was discovered in the Second National Bank of that city. It was found in the accounts of Lee McFarland, an old and trusted clerk, in charge of individual deposits. It had been observed that he kept his books locked up. and finally, during his absence, the directors got the books and made an examination, with the above result. McFarland's bendsmen and relatives will make the amount good. Some hint of this trouble started a run on the bank. The officers, krowing their ability to meet demands, kept the bank open from 7 o'clock until midnight, inviting all depositors to come in if they wished. McFarland had speculated is grain and stocks.

3. February 1, 1897 Daily Camera Boulder, CO
Article from Daily Camera, February 1, 1897

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Article Text

GREAT DEFALCATION, Big Shortages Discovered in the Accounts of an Old and Trusted Clerk. Parkerburg. W. Va., Feb. I-A defalcation of $43,000 was discovered today in the accounts of Lee McFarland, a trusted clerk of the Second National bank. A slight run on the bank ensued when the news was made public.

4. February 1, 1897 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, February 1, 1897

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Article Text

Special Dispatch to the Intelligencer. PARKERSBURG, W. Va., Jan. 31.Lee B. McFarland, teller at the Second National bank, is a defaulter to the tune of $43,000. Such were the startling facts that gained publicity to-day, and caused the greatest sensation known for years in this city. McFarland is a middleaged, married man, a churchman and one of the most prominent and highly respected citizens of this place. All who know him placed implicit confidence in his honesty and integrity. The bank officials placed the highest trust in him; in fact, only last week he was promoted to assistant cashier under Cashier W. H. Wolfe, and it was this change that brought to light McFarland's defalcations. For years he has had the whole charge of the individual ledger, and his promotion necessitated him giving up that book. This he refused to do. This peculiar action aroused the suspicion of his assistant, Benjamin Neal, who followed up his suspicions with a rigid investigation, which resulted in McFarland's defalcations being discovered. Neal communicated his startling discoveries to Cashier Wolfe, who was dumbfounded. The shortage was made known to the cashier last Wednesday night. Thursday morning McFarland confessed to having taken $43,000. The matter was kept a profound secret. but Saturday afternoon a rumor gained public circulation that the bank WCR unsound; no hint being given of McFarland's dishonest doings. People were loath to be= Heve the report. as the bank was always considered very substantial, it being one of the oldest financial institutions in this city. Quite a number of small depositors started a run on the bank late Saturday afternoon. All comers were satlsfied. Deposits were paid out till nine o'clock Saturday night. McFarland's misappropriation was not known to the public till to-day. He spent the money speculating on margins. His property, valued at $15,000, has been turned over by him to the bank, and his relatives, who are rich Pennsylvanians, telegraphed to-night that they will make up the balance of the shortage. The other banks have arranged to furnish the Second National assistance If necessary. The bank is still solid, but excited depositors are likely to cause some trouble. McFarland's defalcations began in 1891. A government bank examiner is here now. This city has never known such a sensation as this affair has created. McFarland has not been arrested and will not be, though he will lose his position.

5. February 1, 1897 Marietta Daily Leader Marietta, OH
Article from Marietta Daily Leader, February 1, 1897

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Article Text

SHY $48,000 Ie Lee B. McFarland, Assistant Cashier of the Second National Bank of Parkmay ersburg. A great sensation was sprung on the citizens of Parkersburg Saturday afternoon when it was announced that Lee B. McFarland, Assistant Cashier of The Second National Bank of Parkersburg. was short in his accounts with the bank to the extent of $43,000. Mr. McFarland is one of the foremost men of our sister city, and has been trusted most implicitly with the affairs of the bank. He had charge of the individual accounts, and examination develops the fnet that since 1891 the discrepancies appear, and they amount all told to the sum stated above. The principal cause of the shortage was a disposition on the part of McFarland to operate in Wall Street, which game he cou d not go upagainst with success-hence his downfall. Mr. McFarland has property of various kinds amounting in all to about $16,000, which he has surrendered to the bank: and he has relatives, we understand, who have agreed to make up the balance of the sh ortage. When the news reached the public ear there was quite a run on the bank, which kept its doors open, paying out, until 9 o'clock, Saturday night. It may be that Monday morning will see the flurry still in mild existence, but the other banks will come to the aid of The Second and see it through with its temporary trouble. The bank is not impaired in the least. It is one of the solid institutions of the city. No doubt ere they close their doors for the day Monday many of their depositors will have been in line as eager to put their money back in as they were to take it out. Mr. McFarland has always stood very high with the people, being a prominent figure in the best circles. He is a married man, and has several children. It is unfortunate that he could not have been satisfied to acquire riches in a more conservative and substantial manner. Only a few weeks ago-at the last election-he was promoted to the position of Assistant Cashier McFarland, be it said in his favor, did not make the matter of his shortage worse by leaving town. Hestayed right with his trouble, and resignedly made up the deficit so far as was in his power to do

6. February 1, 1897 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, February 1, 1897

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Article Text

HEAVY DEFALCATION. An Old and Trusty Bank Clerk Speculates in Grain and Stocks. CINCINNATI, Feb. 1.-A TimesStar special from Parkersburg says a defalcation of $42,000 has been discovered in the Second national bank of that city in the accounts of Lee McFarland, an old and trusted clerk in charge of individual deposits. Some hint of trouble started a run on Saturday. The officers kept the bank open from 7 o'clock until midnight. McFarland had speculated in grain and stocks.

7. February 1, 1897 Deseret Evening News Salt Lake City, UT
Article from Deseret Evening News, February 1, 1897

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Article Text

HEAVY DEFALCATION. Au Old and Trusty Bank Clerk Speeulates in Grain and Stocks. CINCINNATI, Feb. 1.-A TimerStar special from Parkersburg says a defalcation of $42,000 has been diecovered in the Second national bank of that city in the accounts of Lee MeFarland, an old and trusted clerk in charge of individual deposits. Some hint of trouble started a run on Saturday. The officers kept the bank open from 7 o'elock until midnight. Mc. Farland had speculated in grain and stocks.

8. February 2, 1897 Marietta Daily Leader Marietta, OH
Article from Marietta Daily Leader, February 2, 1897

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Article Text

TUESDAY, FEB. 2, 1897 THAT vague rumors are more destructive of public confidence than the publicity of facts, howeversensational, is evidenced by the McFarland defalcations at Parkersburg. Had the entire story been given to the Parkersburg papers on Saturday the Second National Bank would not haye been in imminent danger of going to the wall by a run on its deposits. It is uncertainty that saps courage.

9. February 2, 1897 The Saint Paul Globe Saint Paul, MN
Article from The Saint Paul Globe, February 2, 1897

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Article Text

Heavy Defalcation. CINCINNATI, O., Feb. 1.-A Times-Star special from Parkersburg says that a defalcation of $43,000 was discovered in the Second National bank of that city. It was found in the accounts of Lee McFarland, an old and trusted clerk, in charge of individual deposits. It had been observed that he kept his books locked up, and, finally, during his absence, the directors got the books and made an examination, with the above results. McFarland's bondsmen and relatives will make the amount good. Some hint of this trouble caused a run on the bank.

10. February 3, 1897 Watertown Republican Watertown, WI
Article from Watertown Republican, February 3, 1897

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Article Text

BANK CLERK'S DOWNFALL. Investigation Shows a Trusted Employe to be Short at Least $43,000. Cincinnati, O., Feb. 1.-A Times-Star's special from Parkersburg, W. Va., says that a defalcation of $43,000 was discovered in the Second National bank of that city. It was found in the account of Lee McFarland, an old and trusted clerk, in charge of the individual deposits. It had been observed that he kept his books locked up and finally during his absence the directors got the books and made an examination with the above result. McFarland's bondsmen and relatives will make the amount good. Some hints of this trouble started a run on the bank. The officers, knowing their ability to meet demands, kept the bank open from 7 o'clock until midnight. inviting all depositors to come in if they wished. McFarland had speculated in grain and stocks.

11. February 18, 1897 The Pioche Weekly Record Pioche, NV
Article from The Pioche Weekly Record, February 18, 1897

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Article Text

TELEGRAPHIC NEWS. Condensed Telegraphic Reports of Late Events. BRIEF SPARKS FROM THE WIRES. Budget of News For Easy Digestion-All Parts of the Country RepresentedInteresting Items. Governor Sadler of Nevada has signed the bill legalizing prize fig its. W. G. Harrington & Co., jewelers, have assigned at Columbus, Assets, $25,000, liabilities, $17,000. The people of Alabama are so much opposed to the Australian ballot system that it will probably be abandoned. e Ira D. Sankey, the revivalist, is coming west on account of his wife's health and will be in San Francisco in April. The abolition of the forty days' quarantine bill wll probably result in a large cattle trade between the United 0 States and Canada. The directors of the Chicago Gas Company have declared a regular n quarterly dividend of 1½ per cent payable February 20th. r r The Homeopathic Society of Kings county, N. Y., asserts that the girls of e Brooklyn are being injured by the IS amount of study enforced at the is schools. y The Indian school that is maintained E 10 by the Government at Carlisle, Pa., has been quarantined on account of the 15 prevalence of measles among the boys and girls. m Colonel M. J. Foster of Louisiana is st at Colon, Colombia, making inquiries in connection with the quarantine at New Orleans against shipping from South d American ports. ce 11 A receiver for the Dime Savings Bank of Chicago has been appointed. The bank owes depositors $365,000, 1, and has but $175,000 cash, but claims y to be able to pay depositors in full. y 10 Charles A. Eaton & Co., who operp ates one of the largest shoe factories in or Brockton. Mass., have discharged 300 employes and issued notice that the at factory would be closed indefinitely. 1. Burglars entered the shop of the A. ee et H. Reeves Gold Leaf Manufacturing Company, 153 Fifth avenue, Chicage, and blew open the safe, securing $5000 in gold in various stages of manufac ture. The woman suffrage bill passed the Senate of Nevada by a vote of 9 to 5 id and was sent to the Assembly, where 10 it was referred to a committee. It is 11 thought it will be defeated in the Ash te sembly by a very small majority. 01 The boys' dormitory of the Genessee Wesleyan Seminary, a four-story brick 18 building at Lima, N. Y., was burned ly the other morning. One student was en injured. The valuable library was or 000. entirely destroyed. The loss is $50,is or A defalcation of $43,000 has been ne discovered in the Second National ne Bank of Parkersburg. West Va., in the de accounts of Lee McFarland. an old and to trusted clerk in charge of indivioual on deposits. McFarland had speculated ne in grain and stocks. rd ht With the intention of providing at something to occupy the minds of the ed convicts at Sing Sing Prison, New se York, a class in drawing will be rt started. Among the convicts is an n. artist and architect. There is also in of Sing Sing an Italian sculptor, who will SS. start a class in modeling clay and wax. n, Edward Batson was instantly killed and ten others seriously injured, two iiprobably fatally, at the Georgia mine, ill near Flemington, W. Va. Coal is sent th down an inclined railway by gravity ry loaded cars hauling up empty ones or er another track. When the accident roccurred thrity miners were going up on in two cars when a loaded car jumped the train. the track, crashing into the upbound all A stockman named Maxiuall